Granholm OKs bill to reduces taxes in older neighborhoods

Excerpts from the article:

As reported in Crain’s Detroit Business’ Jan. 2 issue, the measures are designed to retain residents and stimulate investment and housing development in urban neighborhoods by allowing designated communities to cut property taxes for up to 15 years.

In Detroit, qualifying residents could see their homestead millage rate drop from 67 mills to about 52. That would mean savings of about $1,500 in the first year alone on a home with a taxable value of $100,000, according to Kilpatrick’s office.

In signing the legislation Tuesday, Granholm said the measures will make home ownership more affordable and create “incentives for families to renovate existing areas that have been abandoned or run down.”

Under the new laws, eligible home owners, in lieu of property taxes, would pay a zone tax equal to half the city and county operating millage rates, plus all other applicable taxes. The zone tax would increase in each of the last three years of the abatement, eventually reaching seven-eighths of operating mills in the year the abatement expires.

Click here to read more